Contact Information     

Community Redevelopment Agency

City of Hallandale Beach

400 South Federal Highway – Room #124

Hallandale Beach, Florida 33009

Ph: (954) 457-1422

Download the Housing Assistance Procedures Manual

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·         The City of Hallandale Beach assists first time homebuyers with the cost of construction of a new single family home or the purchase of an existing home, condominium, or townhouse.

·         The City provides a lump sum of $25,000 or $35,000 that can be used to purchase a lot, construction cost and/or closing costs or to lower mortgage. An additional $5,000 may be available for public service applicants and City employees.

·         The assistance will become a 2nd mortgage with no interest. No payments will be due as long as you live in the house.

·         You must apply and be approved by a financial institution (bank, credit union or mortgage broker) for the additional funds to pay for the cost of the new construction. The assistance will be disbursed upon the closing on the loan with the lender.

·         The City owns several vacant lots that may be purchased at the assessed value.

Minimum Requirements

·         You are a first time home buyer (or have not owned a property within the last three years).

·         You meet the income requirements.

·         You are employed or retired.

·         You have an acceptable credit score.

·         You obtain a first mortgage from a financial institution for the additional funds.

·         You are able to provide 3% of the mortgage amount as a down payment.

Income Requirements

Your annually income must be equal or less than the following current income limits (amended from time to time by Broward County):

1

$44,350

$66,600

2

$50,700

$76,080

3

$57,050

$85,560

4

$63,350

$95,040

5

$68,450

$102,720

6

$73,500

$110,280

7

$78,600

$117,960

8

$83,650

$125,520

Loan Assistance Increments

The Affordable Housing Program will approve First Time Homebuyer applicants for funding assistance for amounts up to $40,000. The increments are as follows:

·         $25,000 for applicants whose income is below Broward County’s 120% median income as defined by the Office of Housing and Urban Development (HUD).

·         $35,000 for applicants whose income is below 80% of Broward County’s median income as defined by the Office of Housing and Urban Development (HUD).

·         $5,000 additional funds to Police, Fire Fighters, Teachers, and City employees.

Additional Monies/Funds for Buyer

Applicants are authorized and encouraged to seek additional funding from other sources. When award of additional funds is available the City’s Mortgage must remain in second place.

Required Documents

Please be advised that in order to process your application, in addition to a completed signed application form, you also must also provide photocopies of the following documentation:

Identification: (any of the following that apply)

·         ID (driver’s license, voter’s registration card or FL ID card)

·         Birth Certificates

·         Marriage Certificate (if owners/co-owners last name is different than spouse)

·         Divorce Certificate

·         Verification of residence, i.e. Alien Registration, etc.

Income: (any of the following that apply)

·         Signed last 2 years Income Tax forms with W2’s

·         Verification of employment: pay stubs to cover last 6 months

·         Profit & Loss Statement (if self employed)

·         Current Social Security Award letter – if applicable

·         Worker’s Compensation letter – if applicable

·         Unemployment Compensation letter – if applicable

·         Pension Statement – if applicable

·         Child Support (Court Order) – if applicable

·         Alimony (Court Order) – if applicable

·         VA Benefits (Award Letter) – if applicable

·         Food Stamps (Award letter) – if applicable

Financial Statements: (any of the following that apply)

·         Last 3 months bank statements (All pages) for CHECKING and SAVINGS

·         “Gift Letter” is required if a relative is GIVING you funds toward the purchase

·         Latest statement for all IRA’s, 401Ks, 457K, Profit Sharing, Stocks, Bonds, Mutual Funds, etc.

·         Commitment letter from a lender-required with submission of application.

Click here for a list of APPROVED LENDERS.
 

Miscellaneous

Loan Terms

Applications shall be approved subject to available funding.
All funds distributed for the Affordable Housing Program will be subject to the following terms and conditions:

Length of Mortgage and Promissory Note

The Mortgage and Promissory Note will state that the length of obligation for Principal Assistance funds, which is a period of ten years.

First Right-of-Buy-Back

The City will have the First Right-of-Buy-Back at the time the First Time Homebuyer decides to sell or convey the property. The City may opt to purchase the property at the Market Value (as appraised) minus the Shared Appreciation minus any Principal Assistance Amount due including any deductions (if applicable) as described in section D below. The City shall have fifteen (15) business days to respond to the sale offer after the City has been notified by First Time Homebuyer in writing.

City’s Option Not to Purchase

If the City opts not to purchase the property, the Shared Appreciation as well as the Principal Assistance Amount including any deductions (if applicable), as described in section D below, will be due back to City at the time the property is sold or conveyed.

Amount Due by Homebuyer at time of sale or conveyance

·         Shared Appreciation
At the time the property is sold or conveyed the Shared Appreciation amount due back at time of sale or conveyance will be forty percent (40%) of the Proceeds of Sale. The Shared Appreciation will be due to the City regardless of the number of years the property is owned by First Time Homebuyer.

·         Deductions

o        Sale or Conveyance of Property within first five years
 If the Homebuyer sells the property within the first five years, the Principal Assistance amount along with a penalty of twenty percent (20%) of the Principal Assistance Amount plus the Shared Appreciation amount will be due back to the City.

o        Sale or Conveyance of Property between year six and ten
If the property is sold between the sixth and tenth year, the Principal Assistance Amount will be reduced by twenty percent (20%) per year until the tenth year. Therefore, if the property is sold or conveyed in the sixth year the Principal Assistance Amount will be reduced by 20%, seventh year 40%, eighth year 60% ninth year 80%, and at the tenth the Mortgage and Promissory Note will be satisfied. The Shared Appreciation amount will be due regardless to the City regardless of the number of years the property is owned by First Time Homebuyer.

o        Sale or Conveyance of Property after year ten
If the property is sold or conveyed after ten years, only the Shared Appreciation amount will be due to the City.

o        Any documented improvements made by First Time Homebuyer to the property which increases the value of the home, will be deducted from the Proceeds of Sale prior to collecting the forty percent Shared Appreciation amount.

For example

First Five Years

If the property is sold or conveyed within the first five years, the City will collect the $25,000 Principal Assistance Amount, a twenty percent penalty which is $5,000 and the Shared Appreciation amount of forty percent (40%).

These terms are to be documented as part of the Mortgage & Promissory Note and will be incorporated into the application to insure applicant acknowledgement of terms.
 

Sixth to Tenth Year

If the property is sold or conveyed between the sixth and tenth years, the City will collect the forty percent (40%) of the Proceeds of Sale plus the original Principal Assistance Amount reduced by the appropriate 20%. Therefore, if the property was originally purchased by First Time Homebuyer for $150,000, with Principal Assistance Amount of $25,000 from the City, and First Time Homebuyer sells the property in the eighth year and the Proceeds of Sale are $100,000, the amount due would be $40,000 of Shared Appreciation and $10,000 which is the Principal Assistance Amount reduced by 60%.

After Ten Years

If the property was originally purchased by First Time Homebuyer for $150,000, with Principal Assistance Amount of $25,000, and the First Time Homebuyer wishes to sell the property after ten years which appraises at $250,000, the Proceeds of Sale is $100,000. The City will collect forty percent (40%) of the $100,000 Proceeds of Sale.